Corn Production Costs in Mato Grosso Increasing, but Still Modest
The Mato Grosso Institute of Agricultural Economics (Imea) indicated that the out-of-pocket production cost for corn in the state increased 3.2% during the month of October, which makes ten months in a row that the costs have increased.
The out-of-pocket cost in October was R$ 2,236.34 per hectare (approximately $167 per acre). The cost of fertilizers and soil additives increased 4.6% during October. Fertilizers and soil additives now account for 47.5% of the out-of-pocket costs compared to 42.3% last growing season.
With a modest corn yield of 5700 kg/ha (90.6 bu/ac), the out-of-pocket cost for producing corn in Mato Grosso would be approximately $1.85 per bushel. While farmers are concerned about the increasing costs, the high domestic corn prices in Brazil will allow farmers in Mato Grosso to still make a profit growing corn.
Mato Grosso is Brazil’s largest corn producing state and virtually all the corn is planted as a safrinha crop after the soybeans are harvested. Farmers in the state are expected to plant 91% of their safrinha corn during the months of January and February, which is about a month earlier than last year.
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